Japan Falters as Profligate U.S.
Revels in Its Economic Prosperity

By

Jacob M. Schlesinger and

David P. Hamilton Staff Reporters of The Wall Street Journal

Updated July 21, 1998 1:57 a.m. ET

A decade ago, when Japan was considered economically mighty and the U.S. was struggling, many economists agreed that a big reason for the disparity was savings: The thrifty Japanese had plenty to invest in their future, the wanton Americans too little.

Today, the average Japanese family puts away more than 13% of its income, the average American family 4%. Yet Japan is in the tank while the U.S. prospers.